Why the 2026 Social Security COLA Could Make History
In October, we will learn what the 2026 Social Security cost-of-living adjustment (COLA) will be. Right now, it’s predicted to be either 2.6 or 2.7 percent, depending upon which analyst you follow. Either way, it could help make history.
According to an article by MSN, if the forecasts hold, “it would mark the first time this century that five consecutive COLAs reached at least 2.5 percent. The last time Social Security’s cost-of-living adjustment was at least 2.5 percent for five straight years was 1987 through 1996.”
Additionally, it would mark the first COLA increase in four years. The Social Security cost-of-living adjustments have been steadily decreasing in recent years, from 8.7 percent in 2023 to 3.2 percent in 2024 and 2.5 percent this year. The average COLA since 2010 is just 2.3% percent.
New COLA Calculator Needed
The annual Social Security COLA would be higher if a better COLA calculator were used. One more attuned to seniors’ spending.
Right now, COLA increases are tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is based on changes in the average prices of household goods such as food, housing, and transportation.
Many senior advocates, including The Seniors Trust, believe this is the wrong inflation measure to use. We believe the Consumer Price Index for the Elderly (CPI-E) would be a better measure. It puts more weight on categories, such as healthcare and housing, that impact seniors more.
Landmark Legislation
That could become a reality if the Social Security Expansion Act is passed. It calls for adopting the CPI-E as the COLA calculator, better ensuring that Social Security benefits keep pace with inflation.
Additionally, this landmark piece of legislation would also extend the solvency of the Social Security trust fund through 2096, expand Social Security benefits by about $200 a month for current and new beneficiaries, require millionaires and billionaires to pay their fair share into Social Security by lifting the wage cap, and improve the Special Minimum Benefit for Social Security recipients which would help low-income workers stay out of poverty.
Is this something you can get on board with? Join us in urging Congress to enact the Social Security Expansion Act. You can show your support by signing our petition.
